How do I set up late fees?

A late fee, also known as a late fine or a past due fee, is a charge levied against a tenant for not paying an invoice by its due date. Late fees are disabled by default.

To set up late fees, click on the gear icon in the upper right-hand corner, which will take you to the main Settings menu. Select Accounting Settings and you will see the "Invoices &Late Fees" tab. Beneath the "Global Rent Late Fee Settings" heading you have the option to impose either a one-time late fee, a daily late fee, or both.  The system will automatically generate the late fee once the tenant's grace period has expired. 

Please note!
You will need to activate late fees separately in every lease when moving in a tenant. 

There are three different types of one-time rent fees:

  • Fixed amount: The system will automatically invoice the entered set amount;
  • Percentage of recurring charges: The system will automatically calculate the entered percentage of the rent invoice;
  • Percentage of outstanding charges: The system will automatically calculate the entered percentage of all outstanding rent invoices.

By activating the Daily rent late fee, the fee will be assessed every day until the tenant’s balance is positive.

There are two types of the Daily fee:

  • Fixed amount: The system will automatically invoice the entered set amount every day until the tenant’s balance is positive;
  • Percentage of outstanding charges: The system will automatically calculate the entered percentage of all outstanding rent invoices every day until the tenant’s balance is positive.

Once you make changes, press on Update to save them:

The grace period is five days by default. You may select from one to 28 days. If the grace period is "None" and due day 1st, late fees would be posted on the 1st if full payment is not initiated by 5 p.m. If the grace period is "1 day" and due day 1st, late fees would be posted on the 2nd if full payment is not initiated by 5 p.m, etc.

Please note!
By activating the One time rent late fee, the fee will be assessed once per rent schedule cycle on the last day of the grace period.

 

 

Last updated:
Sep. 22, 2021